Plains All American Pipeline, L.P. (PAA) to acquire a 55% interest in EPIC Crude Holdings, LP in a transaction valued at approximately $1.57 billion.
The acquisition enhances Plains' well-head to water strategy and adds significant assets to their portfolio, including the EPIC Crude Oil Pipeline.
EPIC Pipeline provides crucial long-haul crude oil takeaway from the Permian and Eagle Ford basins to the Gulf Coast market at Corpus Christi.
Transaction Value
Approximately $1.57 billion transaction value with an additional $193 million earnout potential.
Synergistic Opportunities
Expect mid-teens unlevered returns and immediate accretion to distributable cash flow.
Asset Highlights
Includes 800 miles of long-haul pipelines, over 600,000 barrels per day operating capacity, and 7 million barrels of operational storage.
Strategic Benefits
Enhanced market connectivity, increased upstream and downstream options, and strong customer commitments.
- The acquisition strengthens Plains' position as a premier crude oil midstream provider.
- It complements their asset footprint, enhances customer offerings, and boosts connectivity and flexibility.
- The synergies from the combined assets are expected to drive value through expanded scale, additional service offerings, and financial flexibility.
Plains All American Pipeline's acquisition of a majority stake in EPIC Crude Holdings marks a significant strategic move that will enhance their market presence and offerings, ensuring increased connectivity and value creation for customers and stakeholders alike.